Thursday, July 3, 2025
I recently researched an energy company – Vitesse Energy LLC – whose business motto included the phrase “the velocity of capital compounding.” That idea caught my eye and applies to the power of compounding dividend or interest income. I like using the word “velocity” to indicate the speed at which gains can happen. By the […]
In mid-April, Simplify ETFs launched a pair of what they call “barrier ETFs,” which use an advanced option strategy to generate above-average income for investors. The strategy is fascinating and hopefully profitable. Barrier put options have binary outcomes. Suppose the underlying asset is above the barrier at expiration. In that case, the option expires without […]
The gains from the so-called “Magnificent Seven” stocks powered the 2023–2024 bull market. These mega-cap tech stocks—Tesla, Microsoft, Nvidia, Meta Platforms, Amazon, Alphabet (Google), and Apple—comprise over a third of the cap-weighted stock market indexes. The only Magnificent Seven tracking ETF, the Roundhill Magnificent Seven Covered Call ETF (MAGY), launched on April 11, 2023, and […]
Known for dividends and attractive yields, energy midstream stocks have been a hot stock sector for the last five years. For example, the Global X MLP & Energy Infrastructure ETF (MLPX) returned 239% over the last five years. The 2025 bear market (mid-February through early April) saw the midstream sector drop by 20%, similar to […]
President Trump’s “Liberation Day” announcement of imposing significant tariffs on the rest of the world triggered a steep and scary sell-off in the stock market. The S&P 500 and Nasdaq 100 indices reached bear market (more than 20% down) from their mid-February record highs. The fast and furious market crash had investors—both individuals and professionals—selling […]
Seven large “mega-cap” stocks drove the bull market returns of 2023 and 2024. Due to their market values, these stocks—Apple, Microsoft, Nvidia, Alphabet, Amazon, Meta Platforms, and Tesla—drive the returns of the S&P 500 and QQQ indexes. They are also widely owned by individual investors. The Roundhill Magnificent Seven ETF (MAGS) launched in April 2023. […]
Recently, I ran across a list of the “7 Deadly Investing Sins Clients Make.” The article was aimed at financial advisors, but I think regular investors would benefit from understanding the list items. Let’s go through the “investing sins,” and I will share my thoughts. Forgetting Arithmetic My newsletter subscribers manage their own investments, so […]
On April 25, finance REIT Rithm Capital (RITM) reported the company’s first-quarter results, and the financials reinforced the fact that the RITM stock price is severely undervalued. Rithm reported earnings available for distribution of $0.52 per share for the quarter. A year ago, earnings came in at $0.48; two years ago, the number was $0.35 […]
ETFs that use covered call option strategies to generate cash and pay big yields have become hugely popular. My database includes more than 100 funds, with new ones launching every week. Fund sponsors continue to develop new strategies to counter the one big negative of covered call trading. I have found one ETF that has […]
Gold has marched new record highs this year. You are a happy camper if you own gold or gold mining stocks. Silver has not yet joined in with gold for these record-setting gains; however, it seems very possible that investors will start looking for silver to mirror the gains in gold. The popularity and price […]
